Tuesday, June 28, 2011

Throw Clarence Thomas Off the BenchThe Supreme Court justice broke the law by not disclosing his wife's $700K think-tank payday. Paul Campos on Clarence Thomas' "preposterous" defense and why he likely won't be punished.March 3, 2011

The criminal-law scholar George Fletcher once quipped that the maxim "ignorance of the law is no excuse" is one of the few fundamental principles of law that most people actually know. As harsh as this principle may sometimes be when applied to ordinary citizens, applying it to justices of the Supreme Court seems only reasonable.

Thus it's difficult to feel sympathy for Clarence Thomas, as he finds himself embroiled in a controversy over his failure to reveal the sources of his wife's non-investment income (or indeed that she even had any such income). The 1978 Ethics in Government Act requires all federal judges to fill out annual financial-disclosure forms. The relevant question on the disclosure form isn't complicated: Even if Justice Thomas wasn't a lawyer, he shouldn't have needed to hire one to explain to him that the box marked NONE next to the phrase "Spouse's Non-Investment Income" should only be checked if his spouse had no non-investment income.

In fact Ginni Thomas was paid nearly $700,000 by the Heritage Foundation, a "conservative think tank," between 2003 and 2007, as well as an undisclosed amount by another lobbying group in 2009. Justice Thomas' false statements regarding his wife's income certainly constitute a misdemeanor, and quite probably a felony, under federal law. (They would be felonies if he were prosecuted under 18. U.S.C. 1001, which criminalizes knowingly making false statements of material fact to a federal agency. This is the law Martha Stewart was convicted of breaking by lying to investigators.)

Thomas' defense is that he didn't knowingly violate the law, because he " misunderstood" the filing requirements. This is preposterous on its face. Bill Clinton was impeached—and subsequently disbarred—for defending his false statements about his affair with Monica Lewinsky with an excuse that wasn't as incredible as the one Thomas is now employing...

With a new Iowa poll putting her in a dead heat with the front-runner for the Republican presidential nomination, Rep. Michele Bachmann deflected allegations that she and her family had benefited from government assistance programs and said that hundreds of thousands of dollars to her family farm and a counseling clinic went instead to her employees and her in-laws.

"My husband and I did not get the money," she said, appearing on Sunday news talk shows as she prepared to officially open her campaign in her original hometown of Waterloo, Iowa.

The Los Angeles Times reported Sunday that Bachmann, a congresswoman from Minnesota and "tea party" favorite, portrayed herself as a fiscal conservative while also benefiting from government funds and federal farm subsidies. An examination of her record and finances showed that a counseling clinic run by her husband received nearly $30,000 from the state of Minnesota in the last five years, with part of the money coming from the federal government. And a family farm in Wisconsin, where she is listed as a partner, received some $260,000 in federal subsidies.

Bachmann and her staff declined to talk to about the government assistance for the L.A. Times article. But asked about the issue on "Fox News Sunday," she insisted that she and her husband had not benefited at the expense of federal and state taxpayers.

"First of all," she said, "the money that went to the clinic was actually training money for employees. The clinic did not get the money. And my husband and I did not get the money either. That's mental health training money that went to employees."

As for the farm, she said it belonged to her father-in-law. "It's not my husband and my farm," Bachmann said. "And my husband and I have never gotten a penny of money from the farm."

As the Los Angeles Times reported on Sunday, however, in financial disclosure forms, Bachmann reported receiving between $32,503 and $105,000 in income from the farm, at minimum, between 2006 and 2009.

Bachmann also repeated her stance that she was opposed to federal earmarks that sponsored pet projects for politicians back home and said she believed "the states have to build roads and bridges," not the federal government. But asked whether that was an inconsistency given that her family appeared to be benefiting from government aid, she said the clinic money was spent to train employees when they otherwise would have been there working...

Saturday, June 25, 2011

Here’s one financial figure some big U.S. companies would rather keep secret: how much more their chief executive makes than the typical worker.

Now a group backed by 81 major companies — including McDonald’s, Lowe’s, General Dynamics, American Airlines, IBM and General Mills — is lobbying against new rules that would force disclosure of that comparison.

The lobbying effort began more than a year ago. It involved some of the biggest names in corporate America and meetings with members of both parties on the House Financial Services Committee and Senate banking committee.

The companies and their Republican allies in Congress call comparisons between the chief and everyone else in the company “useless.”

But some Democrats and investors say the information should be issued to highlight the growing income disparity in the United States. They add that opponents of disclosure merely want to hide the outrageous scale of executive pay packages.

On Wednesday, a House committee approved a bill that would repeal the disclosure requirement.

Disclosing such comparisons “can mislead or confuse investors,” said Rep. Nan A.S. Hayworth (R-N.Y.), who filed the bill to repeal the disclosure. “It creates heat but sheds no light.”

She also said the calculation of the ratio would be a burden for companies, especially those with global operations.

“The real reason House Republicans want to keep the typical worker’s pay secret is that it may embarrass some companies to reveal that they pay their CEO in the range of 400 times what they pay their typical worker,” said Sen. Robert Menendez (D-N.J.)...

During Ronald Reagan's presidency, total federal tax revenue as a percentage of GDP averaged 18.2%, reaching a low point of 17.3% in 1984.http://www.blogger.com/img/blank.gif

During Barack Obama's presidency, total federal tax revenue as a percentage of GDP has averaged 14.9% and is projected to drop to 14.4% in 2011.

Second, the punchline:

GOP members engaged in a lot of “eye-rolling” according to a member who was on hand to hear Obama, who invited House Republicans to the White House for discussions on the debt ceiling. The White House and Republicans are trying to reach a deal on spending cuts that could allow the $14.3 debt ceiling to be raised.

“(The President) made a comment like the tax rate is the lightest, even more than (former President Ronald) Reagan,” Rep. Lee Terry (R-Neb.) told The Hill following the meeting.

House Oversight and Government Reform Committee Chairman Rep. Darrell Issa (R-Calif.) joked that during the meeting, “We learned we had the lowest tax rates in history … lower than Reagan!”

The fact is, one of our biggest fiscal challenges is that taxes are too low, yet not only do these guys refuse to even consider raising them, they never get tired of denying the plain reality that we have historically low taxes. Perhaps if they acknowledged that simple fact, then they'd have to admit that taxes aren't the problem: underinvestment is.

Tuesday, June 14, 2011

Activists cry foul over FBI probeBy Peter WallstenWashington PostJune 13, 2011http://www.blogger.com/img/blank.gifCHICAGO — FBI agents took box after box of address books, family calendars, artwork and personal letters in their 10-hour raid in September of the century-old house shared by Stephanie Weiner and her husband.

Anti-war activist Tom Burke meets Barack Obama in 2004 at Burke's Chicago-area union hall as Obama was running for U.S. Senate. Burke is one of 23 prominent anti-war activists to be subpoenaed as part of an ongoing FBI terrorism probe.

The search was part of a mysterious, ongoing nationwide terrorism investigation with an unusual target: prominent peace activists and politically active labor organizers.

The probe — involving subpoenas to 23 people and raids of seven homes last fall — has triggered a high-powered protest against the Department of Justice and, in the process, could create some political discomfort for President Obama with his union supporters as he gears up for his reelection campaign.

The apparent targets are concentrated in the Midwest, including Chicagoans who crossed paths with Obama when he was a young state senator and some who have been active in labor unions that supported his political rise...